In the three-way race for leadership in the world wheat market, Russia will be No. 1 in the current marketing year, says USDA’s Grain: World Markets and Trade report. It’s the first time Russia would take the top spot; the United States was No. 1 in 2016/17 and the EU led in 2015/16.
“Russia’s total supplies are expected to be record-breaking, based on near-record production as well as massive carry-in from the previous year,” says USDA. “New-crop Russian wheat is competitively priced against other origins — Australia, Ukraine and the United States.
Over the past several years, Russia has expanded its wheat plantings and improved its yields. In addition, the country improved its infrastructure, especially its port capacity, says USDA. The abundant supplies in Russia will buffer downturns in the United States and the EU.